Permanent Account Number (PAN) card is the most important document, not only just an individual needs but companies too. Companies that are either incorporated in India or abroad, there is a requirement of PAN to conduct business and pay tax without any issues.
Moreover, companies having Indian origin but are generating income outside the country also need to quote PAN for several purposes in the country.
PAN card carries 10-characters with the mix of letters and digits. It is required for all tax-paying individuals, partnerships, companies, etc. It also serves as an identity proof for a number of purposes. You can apply for a PAN card for the company online using the right document. Companies that are incorporated need to fill Form 49A to get the fresh PAN.
Documents required for applying PAN card for company:-
- The documents required for the PAN card application for company is different from the individual application. Here are a few documents essential to submit while applying PAN card for the company-
- The copy of Certificate of Incorporation of the Company issued by the Registrar of Companies.
- The Proof of Address where the company has the registered office. In case, the company does not have the registered office then the copy of the Certificate of Incorporation from the government, where the registered office of the Company is situated can work best.
- Bank draft for the payment of the fees given along with the application
- If you are running limited liability partnership firm then you will need to submit Certificate of Registration issued by the Registrar of LLPs. If you are running a partnership firm then Partnership Deed; or Certificate of Registration issued by the Registrar of Firms
Process of applying for PAN card for the company–
There are two modes of applying for the PAN card for company-offline and online
Offline Mode:-
- Get the downloaded copy of the Form 49A to fill detailed information
- Make sure to carry all the supporting documents to send along
- Check if the entire document is attested and submit the same to the nearest NSDL processing center.
- After processing the documents, the PAN card will be dispatched to the registered office of the company. The application fee for this is Rs. 110
Online Mode:-
- Visit the NSDL website and check for Online PAN application
- You will get the Form 49A which you need to fill with right information
- Once the form is filled, collect the entire document having digital signature in each and submit it online
- In case of company PAN card, the e-KYC and e-sign is not available and the application document is only forwarded physically. This way the company’s name, email ID and contact number will be prefilled.
Why do companies need PAN?
Since the GOI made PAN card compulsory for individuals and companies, every small and big company need to have a PAN card. No matter what type of business or company you are running, it is important to hold PAN card. Some of the reasons companies will need PAN-
- PAN is basically your company’s tax identity.
- PAN is used by the Income Tax Department to track all the financial transactions. Even if you do not fall in the tax bracket, you are required to possess PAN.
- If companies do not have PAN and are generating income, it is considered as withholding of information from the government.
- PAN will help a company in filing Income Tax Returns and in getting different types of invoices and remittances.
Conclusion:-
As mentioned, PAN card is essential for a company to make the finance and tax transaction easy and legally. If you are starting a new company and want to go for the PAN card apply, then seek professional assistance. This will help in completing the process.
